Taiwan's proposed 2027 defense budget sends a message that should be welcomed by the White House, urging allies and partners to increase their defense spending, a US scholar said.
Earlier this week, the government approved the central government's draft 2027 budget, which allocates 1.1225 trillion NTD ($35.3 billion) for defense. The amount is equivalent to 3.01% of gross domestic product (GDP).
Michael Hunzecker, an associate professor at George Mason University who studies Taiwan's defense issues, called the proposed budget a "very positive development." He said it shows that President Lai Ching-te remains committed to keeping defense spending above 3 percent of GDP and to achieving the goal of reaching 5 percent by 2030.
Given the White House's calls for allies and partners to increase their defense spending, the proposal should send a signal that will be welcomed by Washington, Hunzecker said.
“It should also send a clear signal to Beijing that its increasingly aggressive actions have not caused the Lai administration to back down on its national security promises,“ he added.
Hunzecker said the increase in the defense budget should provide Taiwan's Ministry of National Defense and the armed forces with more funds to acquire better and more suitable weapons, ammunition and spare parts, to expand intensive and realistic training, to strengthening resilience and attracting and retaining service members in key frontline combat units.
“Of course, this proposal is just the beginning of a long process. There are still potential obstacles and challenges,” he added.
Hunsaker noted that the proposal has yet to be reviewed by the Legislative Yuan and could be subject to scrutiny similar to that faced by the 2026 budget, which was only recently passed by lawmakers.
He also pointed to opposition parties' resistance to Lai's proposed eight-year special defense budget, saying that further challenge could be expected as parties prepare for the upcoming elections.
A U.S. State Department spokesman, who spoke on condition of anonymity, welcomed Taiwan's proposal to increase its defense spending to above 3 percent of GDP. He said this shows the country's determination to strengthen its self-defense capabilities.
The spokesman said the United States supports Taiwan's acquisition of key defense capabilities "in accordance with the Taiwan Relations Act and the commitment maintained for more than 45 years by successive U.S. administrations."
He added that "the threat facing Taiwan from China has increased significantly."